Tech Mahindra announced its Q3 FY26 results with revenue reaching $1.61 billion, a 2.7% year-over-year increase. The company’s EBIT saw significant growth, rising by 32.8% year-over-year. New deal wins totaled $1.096 billion. The company is focused on AI-driven solutions and enterprise transformation. EBIT margin stands at 13.1%, up approximately 290 bps year-over-year. The company achieved AWS Generative AI competency.
Financial Performance Highlights
Tech Mahindra reported a revenue of $1.61 billion for Q3 FY26, reflecting a 2.7% year-over-year increase and a 1.5% increase compared to the previous quarter (QoQ). In constant currency terms, revenue grew by 1.3% year-over-year and 1.7% QoQ. The company’s Earnings Before Interest and Taxes (EBIT) reached $211 million, representing a significant 32.8% year-over-year increase.
Profitability Metrics
The EBIT margin for Q3 FY26 stood at 13.1%, an increase of approximately 290 bps year-over-year. Profit After Tax (PAT) was reported at $125 million, up by 8.3% year-over-year. The operational PAT margin reached 9.2%.
Deal Wins and Cash Flow
Tech Mahindra secured new deal wins totaling $1.096 billion during Q3 FY26. The company’s free cash flow was $194 million, representing 131% of operational PAT.
Business Updates and Strategic Initiatives
Tech Mahindra continues to focus on strategic engagements, including a major partnership with a European telecommunications provider. The company achieved AWS Generative AI (GenAI) Competency and launched i.GreenFinance platform. The company was also recognized as a Global Sustainability Leader in the S&P Global’s Dow Jones Sustainability Index (DJSI).
Client Metrics
The company has 28 clients contributing more than $50 million in revenue and 64 clients contributing more than $20 million in revenue.
Workforce
The IT headcount stands at 76,194. LTM attrition is at 12.3%.
AI Driven Initiatives
Tech Mahindra is scaling AI solutions for clients, moving from experimentation to execution in areas like IT, process transformation and business transformation. The company is also focused on developing a Large Language Model (LLM) for Education in India, and over 80,000 employees have received training in AI and GenAI.
Source: BSE
